September 28 & 29, 2020 | Virtual
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A Project can be put on hold if it no longer aligns with the company's strategic or tactical objectives.
If the project does not support where the company's vision and mission are headed, often companies make the decision to not continue with investment of resources (time, cost, human capital) into that project.
The Pros :- Saves the company valuable resources (time, cost, human capital) which is better spent at supporting another initiative that is closely aligned with the company's strategic or tactical objectives.
The Cons:- 1) People who are working on the project may lose their employment and maybe back on the job market.
2) The team will have to start again on another project or start work with different people and again have to undergo Forming...storming...Norming..... There is change involved which tends to be one of the biggest barriers.
With regards to cost, when the decision is made to put a project on hold , all costs required to accurately reflect the status of the project up-to the date when there was going to be no more work on that project - eg contractor costs, software licenses, external agency employee salaries should have been accounted for.
Deepesh has done a good job of covering the main pros & cons of putting projects on hold. I'd go a step further and say if we are unable to effectively deliver the project at the moment due to priority shifts or capacity constraints but are unwilling to cancel it outright, then putting it on hold is a good interim strategy.
As far as cost increases go, it really depends on the context of the project. If we have a non-discretionary project, then we may be required to accept any level of cost increase to deliver the bare minimum scope. On the other hand, if it is a discretionary project and we aren't time or scope bound, the sponsor or customer might decide to cancel the project if even a small cost increase occurs if it makes the project less compelling from a net benefits perspective.
The criteria for putting a project on hold are many and it could depend on many internal and/or external factors. I have been on many projects that were put on hold and it was always either budgetary or dependency constraints. So either the money that was earmarked is not available when it was supposed to be or a major dependency would prevent a project from proceeding. Again the pros and cons would depend on the situation i.e. on which side of the fence the project sits - supplier or consumer. But the one negative about any on-hold project is that much of the work that was invested into it up to that point is lost.
Any criteria used to put a project on hold will need to consider mob and demob costs and you need to determine if putting a project on hold for 6 months will offset these costs. If not you might just want to suspend some activities and keep a skeleton team going.
BTW this is a great example of a project that was put on hold a few times. But this is also a good example of how a significant project delay can spin off multiple other projects while the original is on hold.
Nosotros seguimos un proceso basado en el metodo Stage Gate.
El criterio de evaluacion es:
Siempre hay cuatro decisiones posibles:
¿ Tiene sentido estratégico, técnico, financiero ? NO, entonces Kill
¿ Se obtiene la calidad esperada ? NO, entonces Redirect
¿ Tenemos el dinero y gente disponible ? NO:
Prioridad alta, entonces Continue
Prioridad baja, entonces Hold
Que un proyecto pase a Hold no quiere decir que ocasiones mayores costos. De hecho, no deberia ser asi.
I´m seriously considering to put it on hold as this is a non-discretionary project, but yes, it is really important to define associated costs and accept certain level of cost at risk.
In this case Project dependency and constraints are external, customer side, others on regulation, so yes, I need to quantify the potential loss and define a certain % to accept in order to make a final decision
En este caso aplica
¿ Tiene sentido estratégico, técnico, financiero ? SI,
¿ Se obtiene la calidad esperada ? SI hasta ahora lo que se ha evaluado.
¿ Tenemos el dinero y gente disponible ? SI:
Prioridad alta, entonces Continue, pero hay dependencias externas que lo impiden.
Prioridad baja, entonces Hold, Es prioridad Alta
Que un proyecto pase a Hold no quiere decir que ocasiones mayores costos. De hecho, no deberia ser asi.... Coincido totalmente aunque se perdería lo invertido hasta ahora mientras se define si continua, pero al no haber recursos asignados no debería haber mayor costo o incrementos.
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